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Devising a Trade Policy Beneficial to
America

Updated Aug. 26, 2003 12:01 a.m. ET

Chen Zhao argues, "If the U.S. didn't run a massive trade deficit with China, it would have to get the same goods from elsewhere." This is not true for all imported items, as there are still American producers locked in bitter competition with China-based rivals. Counteraction against Chinese mercantilism would, however, displace substantial foreign capital to other countries, reversing some of the movement of recent years from those lands to China. This would be a good thing, as many of the countries that would benefit from this reallocation of investment and trade are friends and allies of the U.S.,...